HomeMy WebLinkAbout09 REL BONDS FOR LENNAR/MMP 01-06-09Agenda Item 9
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AV ~~~17 ~~~~~ City Manager
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MEETING DATE: JANUARY 6, 2009
TO: WILLIAM A. HUSTON, CITY MANAGER
FROM: CHRISTINE A. SHINGLETON, ASSISTANT CITY MANAGER
TIM D. BEREFT, DIRECTOR OF PUBLIC WORKS/CITY ENGINEER
SUBJECT: RELEASE OF FAITHFUL PERFORMANCE BOND FOR LENNAR/MARBLE
MOUNTAIN PARTNERS, LLC
SUMMARY
Pursuant to a Cooperative Agreement between the City and Lennar/Marble Mountain Partners, LLC,
related to the construction of the Valencia Avenue/Armstrong Avenue improvements, the Developer
was required to post Faithful Performance Bonds for their fair share of the Tustin Legacy Backbone
Infrastructure Program. Subsequently, a Community Facilities District (CFD 06-1) was formed,
bonds were sold, and the City received funds for a portion of the Developer's fair share of Legacy
backbone improvements. Lennar/Marble Mountain Partners, LLC has requested release of a
Faithful Performance Bond to reflect City receipt of additional funds.
RECOMMENDATION
It is recommended that the City Council release Faithful Performance Bond, No. 24020615 in the
amount of $8,549,252.00.
FISCAL IMPACT
There is no fiscal impact to the City with this action.
BACKGROUND
The City and Lennar/Marble Mountain Partners, LLC (the Developer) entered into a Cooperative
Agreement in February 2005 that required fair share participation in the Tustin Legacy Backbone
Infrastructure Program. The Agreement identified infrastructure improvements to be funded by the
Developer as their fair share for development of Legacy Parcels 23, 24, 35, 36, and 37. The
Agreement also provided for the establishment of a Community Facilities District (CFD) to fund the
Developer's portion of the Tustin Legacy Backbone Infrastructure Improvements.
In January 2008, the City released three of the five bonds in the amount of $17,400,280.00. The
City has recently received an additional payment from Lennar/Marble Mountain Partners, LLC, and is
satisfied releasing an additional bond, No. 24020615 in the amount of $8,549,252.00.
Christine A. Shingleto Ti rlet
Assistant City Manag r Diet f Public Works/City Engineer
CAS:TDS:ccg:Release of 2"d Faithful Performance bond for Lennar.doc